The report describes activities in the final year of a 3-year project designed to address the placement needs of adult education agencies teaching English-as-a-Second-Language (ESL) students in California. The long-term goal was to identify instruments appropriate for use with the state's model standards for language proficiency. The two primary tasks for the project's third year were: (1) establishment of initial cutoff ranges for the commercially available instruments recommended for use based on the first two years' work, and (2) creation of a test development plan to guide production of operational instruments for placing students according to state standards. Appended materials include: a list of working group members; general content grids for reading, writing, and listening tests; a sample questionnaire used to survey teachers and students during the field testing phase; and data from a special pilot administration of reading, writing, and listening test items. Contains 9 references. (MSE) (Adjunct ERIC Clearinghouse on Literacy Education)